Correlation Between People Technology and Eugene Technology
Can any of the company-specific risk be diversified away by investing in both People Technology and Eugene Technology at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining People Technology and Eugene Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between People Technology and Eugene Technology CoLtd, you can compare the effects of market volatilities on People Technology and Eugene Technology and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in People Technology with a short position of Eugene Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of People Technology and Eugene Technology.
Diversification Opportunities for People Technology and Eugene Technology
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between People and Eugene is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding People Technology and Eugene Technology CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eugene Technology CoLtd and People Technology is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on People Technology are associated (or correlated) with Eugene Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eugene Technology CoLtd has no effect on the direction of People Technology i.e., People Technology and Eugene Technology go up and down completely randomly.
Pair Corralation between People Technology and Eugene Technology
Assuming the 90 days trading horizon People Technology is expected to generate 1.21 times more return on investment than Eugene Technology. However, People Technology is 1.21 times more volatile than Eugene Technology CoLtd. It trades about 0.16 of its potential returns per unit of risk. Eugene Technology CoLtd is currently generating about 0.13 per unit of risk. If you would invest 3,935,000 in People Technology on December 8, 2024 and sell it today you would earn a total of 475,000 from holding People Technology or generate 12.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
People Technology vs. Eugene Technology CoLtd
Performance |
| Timeline |
| People Technology |
| Eugene Technology CoLtd |
People Technology and Eugene Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with People Technology and Eugene Technology
The main advantage of trading using opposite People Technology and Eugene Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if People Technology position performs unexpectedly, Eugene Technology can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Eugene Technology will offset losses from the drop in Eugene Technology's long position.| People Technology vs. NewFlex Technology Co | People Technology vs. Woori Technology | People Technology vs. ADTechnology CoLtd | People Technology vs. Dong A Steel Technology |
| Eugene Technology vs. Daedong Steel Co | Eugene Technology vs. Ssangyong Information Communication | Eugene Technology vs. Nice Information Telecommunication | Eugene Technology vs. Insung Information Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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